| According to the requirement of the modern enterprise system, the ownership ofenterprise and the enterprise management are separated, and CEO also arises at thehistoric moment. CEO is responsible for the daily operation and management activities.he is seen as the company’s intangible assets and his reputation has become an importantpart of corporate reputation. CEO has naturally become the darling of the social andmedia, because CEO has such an important role in the enterprise. Reports of the CEOfrequently appeared in various of financial magazines, newspapers and on TV programsand internet media. CEO have become public figures. Especially some big companies’CEO, their words and deed often hit the headlines in the media, attracting globalattentions. The reason of the media such favouring the companies’ CEO is that CEO hasbecome an important part of the company’s intangible assets and has a pivotal role on thereputation of the corporate. In a sense, the companies’ CEO is the companies’ businessCARDS, representing the companies’ images, just like Steve Jobs represents the Apple,Bill Gates represents the Microsoft, Ruibin Zhang represents the Haier. These householdenterprises all over the world, their success is largely due to their CEO, attributed to thegreat influence of their CEO. CEO can make an enterprise, also can destroy a company.CEO of the negative news will bring destruction and irreparable damage.However, CEO can make an enterprise, also can destroy a business. Some negativenews of CEO are likely to bring destruction, causing irreparable loss to the enterprise. OnNovember19,2008, Gome’s CEO was surveyed because of share price manipulationcrimes. After media exposure, Gome’s stock market value began to crazy devalue, andthis situation almost led to bankruptcy. In recent years, Company scandals often happen.Many CEO have lost the trust of the public, and the enterprise also paid a heavy price.This problem is the breakthrough point of the paper, and this paper uses the mediaexposure to express reputation of the CEO, analyzing the relationship of CEO reputation,agency costs and the value of the enterprise. Firstly, the article analyzes the relationshipbetween the CEO’s reputation, agency costs and the value of the enterprise, then makesfive rival hypothesis according to the results of the analysis, and builds the data model,finally comes to the conclusion that argues the relationship of the repution, agency costsand enterprise value. Empirical research suggests that CEO’s reputation is negatively related to theagency costs, positively correlated with enterprise value and the agency costs betweenCEO reputation and the enterprise value plays a partial intermediary role. Thisconclusion leads business owners to favour the CEO of good reputation in theappointment of the company managers, and it is also a wake-up call for CEO. |
